RBI to launch new Rs. 500, Rs. 2,000 notes from today

The Reserve Bank of India (RBI) will launch new Rs. 500 and Rs. 2,000 currency notes from today.

"The decision to cancel the legal tender scatters of 500 and 1000 rupees note is a very bold, powerful and decisive step to fight the menace of black money and the use of fake Indian currency notes. Counter fate fake Indian currency notes for financing of terrorism. RBI will release new currency notes with new features, designs and dimensions from 10 November onwards," Economic Affairs Secretary Shaktikanta Das said while unveiling the new notes on Monday.

The RBI yesterday stated that the banks will remain open for public even on the weekend i.e. November 12 and 13 to deal with rush of people wanting to deposit the defunct currency bills.

Banks and ATMs were shut yesterday to remove old Rs. 500/1000 notes and stock them with lower denomination and new hard-to- fake Rs. 500 and Rs 2,000 currency notes.

Union Finance Minister Arun Jaitley has said that the government's decision will move the country towards a cashless economy.

Reassuring the people that those having lawful money would have nothing to fear, Jaitley said this is a major setback to the parallel black money economy because a lot of currency operating outside the system will now have to be brought into the banking system.

"The government believes that this decision has been welcomed everywhere. This major step with help India's credibility," he added.

The Finance Minister further said this decision will change the way people spend and keep their money.

"It will take India towards a cashless economy, it doesn't merely push the country in that direction, but significantly pushes it," he added.

He also said the decision is of significant advantage to the economy, adding both the Centre and states will benefit from with more revenue accruing in the economic system.